The St$.$ Germaine Company is preparing its cash payments budget. The following items relate to cash payments the company anticipates making during the second quarter of the upcoming year.

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Requirement

Prepare a cash payments budget for April, May, and June and for the quarter. $($If a box is

The St$.$ Germaine Company

Cash Payments Budget

For the Months of April through June

For the Months of April through June

Cash payments for direct materials:

$50\%$ of current month purchases

$50\%$ of last month's purchases

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a$.$ The company pays for $50\%$ of its direct materials purchases in the month of purchase and the remainder the following month. The company's direct material purchases for March through June are anticipated to be as follows:

$\backslash$table$[[,$March,,April,,May,,June$],[$$$,114,000,$$$,132,000,$$$,120,000,$$$,145,000]]$

b$.$ Direct labor is paid in the month in which it is incurred. Direct labor for each month of the second quarter is budgeted as follows:

$\backslash$table$[[,$April,,May,,June$],[$$$,56,000,$$$,66,000,$$$,81,000]]$

c$.$ Manufacturing overhead is estimated to be $140\%$ of direct labor cost each month. This monthly estimate includes $$37,000$ of depreciation on the plant and equipment. All manufacturing overhead $($excluding depreciation$)$ is paid in the month in which it is incurred.

d$.$ Monthly operating expenses for March through June are projected to be as follows:

$\backslash$table$[[,$March,,April,,May,,June$],[$s$,73,000,$$$,86,000,$$$,85,000,$$$,90,000]]$

Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $$9,000$ for monthly depreciation on administrative offices and equipment, and $$3,500$ for bad debt expense.

The company plans to pay $$5,000($cash$)$ for a new server in May.

f$.$ The company must make an estimated tax payment of $$12,000$ on June $15.$